Father Emmanuel Lemelson’s eponymous hedge fund is said to be run within the confines of Christian ethics, which is fitting, as he’s a Greek Orthodox priest. A jury in Boston is not so sure.
Jurors found he made three false statements, including by saying during a radio interview that Promacta was “literally going to go away” and that company representatives “basically agreed with him.”
That certainly sounds like bearing false witness against Ligand Pharmaceuticals. But, importantly, it did not sound to the jury like he also thereby stole from his clients and Ligand investors, a far more important commandment within securities law, and one which means his prophecy of an industry ban, like some of his other prophecies, will not come to pass.
The jurors in the U.S. Securities and Exchange Commission’s case against Rev. Emmanuel Lemelson delivered a mixed verdict, rejecting claims he engaged in a scheme to defraud his fund’s investors or those of Ligand Pharmaceuticals Inc…. SEC attorney Marc Jones indicated it will ask U.S. District Judge Patti Saris to enjoin him from violating securities laws and order Lemelson to disgorge any ill-gotten gains and pay penalties.
Jury in SEC case finds priest shorting biotech’s stock made false statements [Reuters]
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